Budget 2026 kept the income tax slabs unchanged from the previous year, so the FY 2026-27 (AY 2027-28) rates below continue to apply under the new tax regime, which remains the default option.
New Tax Regime Slabs — FY 2026-27
| Income Slab | Tax Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
The rebate makes income up to ₹12 lakh effectively tax-free
Under Section 87A, resident individuals with taxable income up to ₹12,00,000 get a rebate of up to ₹60,000, which brings their tax liability to nil. For salaried individuals, the standard deduction of ₹75,000 pushes this effective tax-free ceiling to around ₹12,75,000 of gross salary.
New regime vs old regime
The new regime offers lower rates but removes most deductions (like 80C, HRA and home loan interest). If you have significant investments in tax-saving instruments, a home loan, or claim HRA, it’s worth running the numbers under both regimes before deciding — our income tax calculator can help you compare the two quickly.
Tax slabs and rebates are subject to notification by the CBDT and can change with future amendments. Please verify current rates before making financial decisions, or reach out to us for a personalised review.